THE DESIGN PROCESS
When contracted by a client, Green Design Group LLC works to help understand and to assist in defining the marketing and sales objectives. Working within this framework, a merchandised collection of apparel and accessory products is designed and developed to meet the sales objectives.
For example, Umbro International's goal was to substantially increase product sales along with fine tuning the apparel collections to reflect its four marketing directions. One marketing program targeted the elite soccer player. Green designed and developed a collection of high performance apparel products for this customer. New fabrications and products were introduced to cater to the needs of the elite athlete. Examples are breathable outerwear fabrics, moisture wicking undergarments, and performance driven garments. Another marketing directive focused on the growing popularity of beach soccer. Green designed and created a group of apparel products which captured the spirit and requirements of beach soccer through fabrications, technical bells and whistles, garment design and graphic impact.
Upon client approval of concepts, colors, fabrications, trims, garment designs, target pricing, production volumes and time lines, the technical product design process begins. A detailed product specifications sheet is created for each style which contains the design illustration and construction details. It also designates the fabrication, embroidery, print artwork, embellishments, hangtags, care labels and trims including zippers, snaps and buttons.
Green Design Group LLC oversees the prototype development with the production factory. In consultation with the client, Green fine-tunes various aspects of the garment design to produce a value driven garment which will retail to the end consumer.
The apparel and accessory products designed and developed by Green Design Group LLC include but are not limited to the following active sportswear silhouettes:
Green Design Group LLC specializes in creating a merchandised collection with multiple items from each product category. The styles are designed and merchandised around the same concept, color story, graphics and applications. "Hot" and "trendy" items are cyclical in nature and correspond to economic trends, cultural events, and consumer actions in the economy. Competitive advantages exist in foreseeing market trends, graphic direction and sport popularity and being first to market with new fabrications and silhouettes. Innovations in graphics, silhouettes, etc. are not sustainable and are easily imitated. The performance and growth potential of The Company is based upon its ability to predict and deliver innovative apparel and accessory products.
THE NEW BUSINESS MODEL
Green Design Group LLC plans to continue working as a design consultant providing apparel concepts and designs to established sporting good apparel firms. Currently, this is the main source of revenue and will fund growth in other areas.
The services of apparel sourcing, manufacturing and importing will become the most profitable of the company. This activity also provides a means of establishing an inherent value in the company. By diversifying services and delegating responsibility to key personnel, the talents and creativity of Green Design Group LLC is contained in a business process rather than Margaret Green.
The chart in Appendix A illustrates the new business model in terms of inputs, services and outputs. For each client these services may differ according to it's needs, preferences and budget. Moving from a design consultant to a full scale marketing and design firm requires (1) the addition of key management and personnel and (2) marketing and sales to attract identified target customers.
Lanzera, Intersport, Inc.: Lanzera, Inc. is a high quality soccer shoe marketing company. It established a niche with elite and high performance soccer players. Green is working with Lanzera to design and produce apparel products to diversify its product offering. For Fall 1996 and Spring 1997 seasons, Green provided design and manufacturing services for soccer team apparel and warm-up suits. The manufacturing was on-time and met specified quality standards. Production was secured in Guatemala, the Philippines, China, Korea and Taiwan. For Fall 1997, a collection of team soccer and retail soccer apparel products was designed.
Design services were paid on a project basis and production commissions were paid as a percentage of FOB prices. This is one source of Green's future cash flows. (See Projected Income Statement in Appendix D)
C.S. Crable Sportswear. Inc.: C.S. Crable Sportswear, Inc. is a licensee for NCAA, MLB, NHL, and MLS teams and colleges. The company markets high quality fleece, shirts, and embroidered tees which contain collegiate and professional team logos, colors and designs.
C.S. Crable contracted Green to design an outerwear collection for Fall 1997 to compliment its existing business. The purpose is to introduce a new assortment of products for C.S. Crable, to build excitement for its brand, and to generate higher gross margins. Products include outerwear jackets, polar fleece, sweaters, and cotton jersey knits. The collection is marketed under the trademarked name "CS TEC".
Central in the collection is an innovative outerwear jacket made of an imported knitted fabric. Green secured an exclusive from the European fabric mill for this fabric process which allows for the high pile, polar fleece-like fabric to be knitted with different designs for the front, back and sleeves. The exclusive applies to the US retail markets of Collegiate, NFL, NBA, NHL and MLB licensed product categories.
Green developed the prototype, sold the concept and assigned exclusive rights to C.S. Crable. A royalty will be paid on each jacket sold. Anticipated revenues are $45,000 on a volume of 23,000 units. This is in addition to a design consultant fee paid for the development of the "CS TEC" apparel collection. The contract for design and development was for one season, Fall 1997, but it is expected C.S. Crable will renew for Fall 1998.
Sport Apex, Inc.: Sport Apex, Inc. is the licensee for Apex branded outerwear and polar fleece apparel. Green designed and developed a twenty piece outerwear and polar fleece collection to be sold in athletic specialty and sporting goods chains. A minimum up-front fee was paid and Green will receive royalties of 1% of gross sales. First season sales are projected at $5,000,000. (See Projected Income Statement in Appendix D)
CURRENT BUSINESS DEVELOPMENT
Concept development - Efforts are underway to develop additional business with the European polar-fleece fabric. Plans are to target additional branded companies, mail order companies and retail chains. The Company will supply a finished product to these clients and earn a gross margin per unit produced. Financing will be required on a project basis for fabric production and garment manufacturing. The fabric and Cut/Make/Trim (CMT) costs are approximately $25.00/unit.
Tactical alliance - Green Design Group LLC has an alliance with two footwear design firms. In the active sportswear market a synergy exists in apparel and footwear coordination. A current trend in the industry favors brands with an apparel/footwear hookup. E. F. Design Studio, a footwear design studio, and Green collaborated on the Umbro International, Inc. design project for Fall 1997. Another footwear design studio is BreitenBush Designs in Portland, OR.
Tee-Shirt Design and Manufacturing – Opportunities in the active sportswear market for a tee-shirt resource which provides creative and innovative tee-shirt graphics and finished products. Research and development is underway to create a tee-shirt brand. Financing will be required for product marketing, production and printing. Initial sales projections are $500,000 for the first year growing to $1,400,000 in year three. The funding request of $150,000 is intended to assist in the sales and marketing of this business opportunity. (Sales projections are included in Projected Income Statement in Appendix D)
Childhelp, USA – Childhelp USA is a non-profit organization dedicated to the fight against child abuse. Margaret Green has been an active supporter of this organization for several years. Green proposed an innovative means of fund raising in which children's apparel will be designed, manufactured, and sold exclusively through a TV shopping network.
The TV shopping program will be marketed as a special broadcast to highlight Childhelp, USA, showcase its accomplishments, increase awareness of child abuse and sell a variety of children's products including a specially designed collection of apparel. Childhelp USA's 145,000 national supporters and friends can help ensure a successful broadcast. Green will earn a commission (10%) of the FOB prices of each product sold.
San Paulo & Alpargatas, S.A. - Final negotiations are underway for Green Design Group LLC to design two apparel collections for the Brazilian footwear company. San Paulo Alpargatas is a $750 million footwear company looking to capitalize on the strength of its footwear brands. One apparel collection is Mizuno Sport, performance apparel, and the other collection is Topper, beach soccer inspired athletic and casual apparel.
|Green Design Group, LLC|
|Table of Contents||Appendices|
1. Executive Summary|
3. Product & Services
5. Sales & Marketing
8. Historical Financials
9. Projected Financials
Projected Income Statements
Projected Cash Flow Statements
Projected 4 Year Income Statement
Resume & Business
|© Green Design Group LLC. April 1,1997.|